Bharti Airtel to acquire Telenor India

Telecom company Bharti Airtel has announced that it has entered into a definitive agreement with Telenor South Asia Investments to acquire Telenor (India) Communications.

As part of the agreement, which is subject to regulatory approvals, Airtel will acquire Telenor India's running operations in seven circles - Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam. These circles represent a high population concentration and therefore offer a high potential for growth, says an official release.

The proposed acquisition will include the transfer of all of Telenor India's assets and customers, augmenting Airtel's overall customer base and network. With the addition of 43.4 MHz spectrum in the 1800 MHz band, Airtel says this will bolster its spectrum foot-print in the above seven circles.

Gopal Vittal, managing director and CEO-IIndia and South Asia, Bharti Airtel, says,"The agreement underlines our commitment to lead India's digital revolution by offering world-class and affordable telecom services through a robust spectrum portfolio spread across multiple bands. On completion, the proposed acquisition will undergo seamless integration, both on the customer as well as the network side, and further strengthen our market position in several key circles."

"The acquisition of additional spectrum through this transaction, which made an attractive business proposition, has further enhanced our spectrum portfolio. The proposed transaction will also create substantial long term value for our shareholders given the significant synergies," adds Vittal.

Sigve Brekke, chief executive officer of Telenor Group, says, "We believe today's agreement is in the best interest of our customers, employees and Telenor Group. Finding a long term solution to our India business has been a priority for us, and we are pleased with our agreement with Airtel. The decision to exit India has not been taken lightly. After thorough consideration, it is our view that the significant investments needed to secure Telenor India's future business on a standalone basis will not give an acceptable level of return."